First-half results were in line with estimates. UBS observes investors in BWP Trust have an elevated level of risk relative to history.
Nevertheless, the stock is trading on an implied capitalisation rate of around 4.8%, reflecting what the broker regards as an unjustifiable defensive “premium”.
UBS is not comfortable extrapolating individual transactions across the whole portfolio. Sell rating maintained. Target is raised to $3.24 from $2.99.
Sector: Real Estate.
Target price is $3.24.Current Price is $4.11. Difference: ($0.87) – (brackets indicate current price is over target). If BWP meets the UBS target it will return approximately -27% (excluding dividends, fees and charges – negative figures indicate an expected loss).
